The USD is slightly weaker in the first part of trading. The BBDXY Index was last just under 1238.00, down smalls from NY closing levels. We remain very much within recent ranges though. The A$ has outperformed following better than expected domestic data, but hasn't seen much follow through.

• AUD/USD got a high of 0.6914, but is now back closer to 0.6900. There wasn't a great of follow through from the CPI and retail sales beats in the fixed income space, while short end yield spreads against the US are around where they were early yesterday.
• NZD/USD is close to flat at this stage, last around 0.6370/75 and underperforming the AUD. Dec commodity prices nudged down 0.1% m/m.
• USD/JPY is tracking with a slightly firmer bias, last in the 132.25/30 region.
• US cash Tsy yields are weaker at this stage, down 1-2bps across the curve, while regional equities are mostly higher.
• EUR/USD is a touch higher around 1.0745 at this stage, +0.10% since the open.